The Canadian Wheat Board

[charliep]

The issue really comes down to the CWB's ability to live in a more de-regulated market.

Kinda reminds me of my school days (over 50) when the teacher used to carry a yard stick. Get out of line and you got wacked across the knuckles.

Teachers can't use yard sticks in this manner any more but they have developed other tools to help students learn. Perhaps student in the new world are taught self discipline with guidance from teachers.

My original question is what will the CWB look like in 5 years (assuming they don't live under the current regulatory authority) and what steps (however small) need to happen to get there.

Maybe the first step is to have some other group than the CWB issuing export licences (likely afederal agency) and work with industry to develop clear criteria as to what qualifies. Would require a change to the CWB Act but what the heck - will be a requirement for the federal government (whatever the political stripe) at some point in time.

[TOM4CWB]

Charlie;

I seem to remember that with barley in Eastern Canada that the CWB had it's export license authority removed.

I understood that Foreign Affairs took those duties over... without a change in the CWB Act. Could be the Regs?

In any event it would not significant changes to resolve this problem...

Especially now a legal action is pending against the CWB because it has abused it's authority specifically on this issue.

[parsley]

Farmers need to be granted licenses automatically charliep.

It is their only alternative "out" if the grain companies get out of line,

Right now, the accredited agencies write up contracts with the CWB. Very lucrative contracts. Easy money. Not competitive at all because the main player is absent...that being the farmer.

Farmers need the option to pick up their toys to bypass the system if it steps put of line. And it has.

If the CWB licensing function automatically grants, it doesn't need to be separate, but if the licensing function is allowed to remain as a tool to keep farmer grain captive, then, I would agree that the marketing-vs licencing functions of the Board should be permanently separated, and this can only be done by Parliament.

Above all, (and I am being redundant), it is crucial that farmers are granted licenses at all times, because it keeps the Board honest(Farmer gets mad and markets outside the CWB), and keeps the MN's honest(they are not guaranteed a captive farmer supply of grain, signed, jailed and delivered by the CWB.

As you all too well know, charliep, "working with the industry" translates best as 'humoring farmers' at a consultation-table, shared with the remainder of industry players, laden with well-laid plans how best to divide up profit's carcass.

Parsley

[parsley]

Yoohoo, Vader, YOOOOOHOOOO,

The table is being set. Where are you? charliep brought a bottle of transition wine.

What are you bringing to the table?

Parsley

[charliep]

From my world, Vader has already answered the question - single desk or nothing. I also note the suggestions around smaller pools (perhaps around specific markets) and different types of pricing options. These are good steps that would better position the CWB to operate in an open market.

The thing I am interested in is the farm manager (perhaps they just read and don't post).

1) What products and services does the CWB offer to your business that provide value?

2) What would your expectations be of the CWB in an open market? What would keep you using their services? Why won't you use the CWB services? If your fear is your neighbor will sell for a higher price than you do, that horse has already left the barn with the new CWB pricing options.

3) What transition would occur? It would seem to me to opening up the market for some smaller areas that do not impact overall pool returns would be a good place to start. Maybe the other area Vader does talk about in terms of the CWB getting more innovative in their contracting and pricing tools. It may mean leaving the CWB in charge of certain markets for a guaranteed period of time (Japan, China, offshore, domestic conventional wheat milling industry or whatever).

[parsley]

#3 charlie,

We've already been moving a kilometer at a time, for example:

A more than willing CWB already has opened up the feed market for the feed mills(an unnanounced secret transition)where thousands of bushels of grain bypass Board marketing with Board blessing. I guess we've never been informed if it has impacted Board marketing. Vader, has the CWB done a study to see if EMFA grain has profoundly impacted Board marketing or the pools?

Will taking a bite of "smaller areas" you are referring to charliep, actually decelerate the transition pace from kilometers to meters?

Parsley